Commonwealth Bank (CBA), a leading Australian bank, has implemented proactive measures to mitigate potential fraud risks associated with cryptocurrency transactions.
In an announcement on June 8, 2023, the bank revealed that it will now refuse or subject certain payments to a 24-hour hold when dealing with cryptocurrency exchanges.
This decision by CBA comes amidst heightened scrutiny of the cryptocurrency market. The US securities authority has recently taken legal actions against two major international exchanges (Binance and Coinbase). Furthermore, another leading Australian bank, Westpac, recently launched trials of its scam prevention tools to fight crypto-related fraud.
CBA’s new measures aim to protect its customers from falling victim to scams linked to payments made to cryptocurrency exchanges. While the bank refrains from disclosing specific details regarding the restricted payments, it cited the need to prevent scammers from exploiting the changes as the reason for this cautious approach.
Additionally, CBA intends to implement a monthly limit of 10,000 Australian dollars ($6,650) on transfers made by clients to cryptocurrency exchanges for purchasing cryptocurrencies. The exact timeframe for the implementation of this restriction has not been disclosed, but it is expected to be enforced in the coming months.
CBA stressed that these measures will undergo continuous review and close monitoring to assess their effectiveness. The bank aims to track the impact of these actions and make any necessary adjustments accordingly.
James Roberts, the general manager of CBA’s fraud management services, emphasized the rising trend of scammers capitalizing on the growing interest in cryptocurrencies. According to Roberts, these fraudsters often present themselves as offering “legitimate investment opportunities,” and redirect funds via cryptocurrency exchanges.
Roberts also noted the new measures will not reduce the risk of losses but will “help customers reduce their risk of falling victim to a scam.”
In addition to new rules, the CBA announced that it would make its industry-leading NameCheck anti-fraud technology available to external organizations that handle payments in Australia as part of CBA’s comprehensive national strategy to combat fraud.
NameCheck is an advanced technology that helps clients ensure that money is being paid to the correct account by verifying the accuracy of entered account details using payment data. Currently, customers can access NameCheck through NetBank and the CommBank App, and businesses can use it through CommBiz.
As the largest bank in Australia, CBA’s decision to refuse or temporarily withhold certain payments to cryptocurrency exchanges sets a precedent in the country’s financial sector and reflects the increasing concerns surrounding the potential risks associated with cryptocurrencies.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
